Research Profile

Saturday, 10 November 2012

No people, no recovery - the UK economy cannot afford a talent deficit

Opinion is divided on whether we are entering a phase of growth or enter
a triple-dip recession and whether the coalition is being effective in cutting
the structural deficit.

But our economy will not recover simply by virtue of paying off some of our accrued debt and we need to pay attention to another
developing problem - which is a deficit of talent.

Last week there was a report on an increasing number of professional
emigrants, doctors, dentists, lawyers, academics and many others - from the UK. According
to report 48% of the 149,000 British emigrants last year came from a
professional background compared with 37% in 1991.

Many blamed the UK's higher rates of tax - but a focus on
individual tax rates is unlikely in itself - to stem the tide of professional
emigrants from the UK.

Those who have options for employment around the
world will consider not simply their own personal financial situation but also
the competitiveness of the business environment, the attractiveness of the
social structure and the prospects for their families. With the UK in its
current state, the only surprise is that the numbers are not higher.

To retain and attract the talent we need to drive
an economic recovery, we must offer a world-class professional environment
coupled with an attractive social and physical infrastructure – in short,
somewhere people actually want to live as well as work.

The environment in the UK does not fare well by
comparison with other countries. World class entrepreneurs, business people,
academics and researchers in this country are often successful in spite of, not
because of the environment we’ve created for them.

It is essential, then, that we create conditions
which make it easier for individuals to succeed. For entrepreneurs this
means more ready access to finance, for businesses it means more
sensible taxation strategies and regulatory reform. For academics it means a competitively funded research environment.

The report brings into sharp focus the importance
of people to our economic recovery. If we fail to pay attention to this warning
shot, the numbers will continue to rise, and without the best talent, there is
no prospect for long-term economic prosperity.